The Veneto Group is engaged in the business of providing (i) certain
specialty pharmacy services and products, (ii) surgical products and
services, (iii) diagnostic testing for screening human blood, urine
and/or saliva samples for the presence of narcotics, medications,
alcohol and other drugs and substances, (iv) durable medical equipment
services, and (v) similar ancillary healthcare services such as
management services for the foregoing businesses (collectively, the “Business”).

Pursuant to an Asset Purchase Agreement dated October 3, 2018 (the “Acquisition
Agreement”), a Generex affiliate, NuGenerex Distribution
Solutions, LLC (“NuGenerex”), agreed to
purchase from the Veneto Group the operating assets of the Business as a
going concern (the “Acquisition”).

“We are pleased to announce the acquisition of these Veneto Group assets
and the addition of NuGenerex Distribution Solutions to the family of
Generex companies, which includes NuGenerex Diagnostics (formerly Hema
Diagnostics) and Antigen Express (soon to be NuGenerex
Immuno-Oncology),” said Joseph Moscato, Generex President & Chief
Executive Officer. “This acquisition is the culmination of our
previously announced restructuring efforts and represents the next stage
in our strategic plan for the future of Generex Biotechnology. The
acquisition of the Veneto operating assets provides the foundation for
building a new, end-to-end solution for healthcare to achieve better
patient outcomes at lower costs, while providing convenience for
patients, turn-key management services for doctors, and integrated
ancillary health services for hospitals and payers. We have acquired an
outstanding management team that has built this business from the ground
up to achieve unaudited revenues of more than $66 million over the past
12 months through this first set of Veneto assets, whilst operating in
only three states. The second set of Veneto asset acquisitions will
complete the enterprise model, which is readily scalable using our
proprietary technology and systems that drive operations and ensure
regulatory compliance. With completion of the acquisitions, we will
scale the business to grow from three to 30 states, providing what is
expected to be a dramatic growth trajectory.”

Mark Schneider, Chairman of Veneto, stated: “This is an incredible
milestone for our business and a testament to the outstanding team we
have assembled at all levels of the organization. We are very excited
about the potential this transaction will unlock for us in the year to
come as it will facilitate the significant expansion of its enterprise
and portfolio of ancillary services.”

The first tranche of the Acquisition closed on October 3, 2018 (the “First
Closing Date”). On the Closing Date, NuGenerex purchased the
operating assets of eight pharmacies, a wholesale pharmacy purchasing
company, and an in-network laboratory (the “First
Closing Assets”). In consideration of the sale, transfer, and
assignment of the First Closing Assets on the First Closing Date,
NuGenerex executed and delivered to Veneto a secured promissory note in
the principal amount of $15,000,000 (the “Promissory
Note”) guaranteed by Generex.

Within the next 30 days (the “Second Closing Date”),
NuGenerex anticipates consummating the acquisition of the balance of the
operating assets of the Business consisting primarily of Veneto’s
management services organization business and two additional ancillary
service companies that have been developed by Veneto (the “Second
Closing Assets”). In consideration of the sale, transfer, and
assignment of the Second Closing Assets, NuGenerex will pay to Veneto an
aggregate purchase price of Thirty Million Dollars ($30,000,000) (the “Purchase
Price”). The Purchase Price will be applied as follows: in full
and final satisfaction of the Promissory Note and accrued interest
thereon; to the establishment of a $9,000,000 segregated trust fund in
respect of contingent liabilities of Veneto attributable to its
pre-Acquisition operations (which liabilities are not being assumed by
NuGenerex); to the establishment of a $3,000,000 escrow fund in respect
of the settlement of the Second Closing Date working capital of the
Business and Veneto indemnification obligations; and the balance will be
paid to Veneto after one year.

Brooks, Houghton & Company, Inc. acted as the Company’s M&A
advisor in respect of the Acquisition, and Eckert Semans Cherin &
Mellott, LLC served as legal counsel to the Company.

Further particulars in respect of the Acquisition are available in
the Generex Form 8-K Current Report filed with the U.S. Securities and
Exchange Commission on October 9, 2018 and publicly available at www.sec.gov
and the disclosures in this press release are subject to those said
particulars.

Cautionary Note Regarding Forward-Looking Statements

This release and oral statements made from time to time by Generex
representatives in respect of the same subject matter may contain
"forward-looking statements" within the meaning of the Private
Securities Litigation Reform Act of 1995. These statements can be
identified by introductory words such as "expects," "plan," "believes,"
"will," "achieve," "anticipate," "would," "should," "subject to" or
words of similar meaning, and by the fact that they do not relate
strictly to historical or current facts. Forward-looking statements
frequently are used in discussing potential product applications,
potential collaborations, product development activities, clinical
studies, regulatory submissions and approvals, and similar operating
matters. Many factors may cause actual results to differ from
forward-looking statements, including inaccurate assumptions and a broad
variety of risks and uncertainties, some of which are known and others
of which are not. Known risks and uncertainties include those identified
from time to time in the reports filed by Generex with the Securities
and Exchange Commission, which should be considered together with any
forward-looking statement. No forward-looking statement is a guarantee
of future results or events, and one should avoid placing undue reliance
on such statements. Generex undertakes no obligation to update publicly
any forward-looking statements, whether as a result of new information,
future events or otherwise.Generex claims the protection of the
safe harbor for forward-looking statements that is contained in the
Private Securities Litigation Reform Act.